Global Market Highlights
DJIA strengthened +2.18% on Wednesday (30/11), followed by the S&P500 (+3.09%) and the Nasdaq (+4.41%). Wall Street gained significantly after The Fed Chair Jerome Powell made sure to slow down the FFR increase at the Dec-2022 FOMC, where market participants expected that the Fed would slow down the FFR increase to +50 bps, from +75 bps previously. Today, the market will be looking toward several data releases such as: 1) US Core PCE Price Index YoY Oct; 2) US PCE Price Index YoY Oct; 3) US ISM Manufacturing PMI Nov.
Domestic Update
• Bank Indonesia foresees banking loan growth to reach 10-12% in FY23F. MNCS Comment: We assess that this is achievable with some notes on positive TPF growth and strengthening capital and smooth banking consolidation under OJK regulation
• Furthermore, the national Covid-19 daily rate had increased by 5,609 active cases (30/11).
Company News
1. TOWR IJ recorded a decrease in net profit -0.81% YoY to IDR2.56 trillion (vs IDR2.58 trillion in 9M21) (IQ Plus). MNCS Comment: TOWR managed to record revenue growth in 9M22 of +33.62% YoY to IDR8.11 trillion (vs IDR6.07 trillion in 9M21). However, the +120.90% YoY rise in finance costs to IDR1.75 trillion (vs IDR794.17 billion in 9M21) weighed on profitability and reduced TOWR's net profit. Currently, TOWR is traded at the level of 16.90x/4.15x PER/PBV.
2. ICBP IJ recorded a decrease in net profit -33.41% YoY to IDR3.31 trillion (vs IDR4.97 trillion in 9M21) (Market Bisnis). MNCS Comment: Despite recording an increase in revenue (+14.75% YoY), the decrease in net profit was due to a significant increase in financial expenses +221.35% YoY to IDR4.25 trillion (vs IDR1.32 trillion in 9M21). Currently, ICBP is traded at the level of 26.69x/3.36x PER/PBV.
3. SMMT IJ will distribute a second interim dividend for the FY22E fiscal year of IDR47.25 billion, or equivalent to IDR15 per share, with the cum dividend date for the regular market and negotiations on 7 December 2022 (IQ Plus). MNCS Comment: Therefore, SMMT will offer a dividend yield of 2.05%. In the distribution of the first interim dividend, DPS reached IDR60 per share or equivalent to IDR189 billion. Currently, SMMT is traded at the level of 6.11x/2.54x PER/PBV.
IHSG Updates
JCI strengthened +0.99% to 7,081.31 on Wednesday (30/11), followed by net foreign buy which reached IDR801.99 billion. The majority of sectors experienced strengthening and drove the index rate, led by the financial sector (+1.80%) and followed by the health sector (+1.20%). On the other hand, the sectors that experienced weakening were the technology sector (-1.81%), followed by the infrastructure sector (-0.17%). The strengthening of the index was in line with most of the Asian exchanges and Wall Street. We see that market players tend to be optimistic ahead of the release of data on Indonesia's inflation rate in Nov-2022 which is estimated by consensus to slow down to 5.5% YoY (vs 5.71% YoY in Oct-2022). On the other hand, the Rupiah exchange rate closed higher at the level of IDR15,732/USD. We estimate that the JCI will move in the price range of 7,030-7,100 pending the release of Inflation Rate Nov, Core Inflation Rate YoY Nov, S&P Global Manufacturing PMI Nov, and Tourist Arrivals YoY Oct data. Today's recommendation: BFIN, CTRA, HRUM, INCO.
Corporate Actions
Cum Dividend: BBCA (IDR35/share)
Cum Stock Split: BYAN (1:10)
Cum Rights: VICO (IDR180/share)
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